Cyprus prepares money controls before banks reopen

Wednesday, March 27, 2013

NICOSIA, Cyprus (AP) — Cypriot authorities are preparing limits on how much money depositors can take out of their accounts a day before banks are set to reopen.

A banking official said Wednesday — on condition of anonymity because the measures have yet to be officially announced — that they include restrictions on large-scale money transfers from the country’s two largest lenders to avoid a run.

But authorities are looking to raise the daily withdrawal limit from 100 euros to 300 euros (from $130 to $386), while payroll payments will be allowed in order to help businesses.

The restrictions will be kept for at least a week.

Banks have been shut for nearly two weeks as politicians sought a plan to raise the funds that would qualify the country for international bailout loans.